Q3-2021 Dynamk Life Science Industrials INSIGHTS: Trends, Transactions & Headlines
M&A and IPO Activity
In This Report
M&A
Top Headlines
Dynamk Insights
VC Investments
Recommended Reads
The exit environment continues to be quite strong this quarter. Whether through M&A, IPO or SPACs, these larger transactions reflect continued consolidations and commercial success within Life Science Industrials. In July, Icon completed its $12B acquisition of PRA Health Sciences which delivers consulting and outsourced development and commercialization services. In September, PerkinElmer completed its acquisition of BioLegend, an international supplier of antibodies and reagents, for approximately $5.25B. Other noteworthy announcements highlighted in detail below are the high-profile IPOs by AbSci and Ginkgo Bioworks.
Top Headlines
PerkinElmer to acquire BioLegend for approximately $5.25B
In July, PerkinElmer announced it entered into an agreement to purchase BioLegend, a leading supplier of antibodies and reagents. The deal was completed in September and will further extend PerkinElmer's position into high-growth Life Science areas such as cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation, and bioprocessing.
Press Release
AbSci valued at +$2B as shares soar 30% in IPO
In a growing trend where Life Science Industrials (LSIs) are taking the IPO route, AbSci is now valued at $2.15B after its IPO. In only ten years, they have developed into a leading supplier of AI-based drug development technologies and is paving the way with their "Integrated Drug Creation Platform."
Press Release
Ginkgo Bioworks begins trading with a market cap of ~$2.5B after SPAC merger
Boston-based Ginkgo Bioworks began trading on the NYSE on September 17. The company calls itself the “organism company” which designs and prints DNA. Ginkgo aims to use synthetic biology in all areas including therapeutics, food, and materials. Founded in 2009, the company is now valued at $15B.
Press Release
Dynamk Insights
Massive IPOs, larger financing rounds, and a faster pace between rounds have become the new norm in Life Science Industrials. The quarter started with AbSci's IPO bringing the company's value to ~$2.15B. AbSci combines AI power with synthetic biology to speed up drug discovery and develop cell lines to produce next generation therapeutics. On September 17th, Ginkgo Bioworks, another synthetic biology company, began trading on the NYSE after completing a SPAC merger and is now valued at $15B. Opentrons, which manufactures automated robotic lab sample and prep systems, announced a $200M Series C round. This quarter also included a $180M Series C by Deep Genomics, which uses AI to decode RNA-related data in drug discovery, as well as a $195M Series D round by Mammoth Biosciences, provider of CRISPR technologies. MOBILion, which develops a mass spectrometry platform to characterize therapeutics and identify biomarkers, announced a $60M Series C round which is nearly 2x their previous round completed just one year earlier. These examples point to an overall increase in the pace of funding rounds as well as the size of each round. The recent IPOs also demonstrate how Life Science Industrials are becoming mainstream on the global markets. Dynamk recently highlighted several drivers contributing to these high-profile announcements in our Annual General Meeting. AI, machine learning, and developments in high throughput screening are fueling innovation breakthroughs in the early drug discovery process. This is a critical stage where drug developers need to quickly identify candidates for further development or rule out those less likely to succeed. Lab automation technologies also play a critical role by speeding up workflows and building a robust development process. Several Dynamk portfolio companies including Curi Bio, Envisagenics, and Lightspeed are all developing platforms to help accelerate this drug discovery stage. Envisagenics, which closed its Series A round in September and received a step-up in valuation, plans to use the recent financing to further advance its drug discovery efforts.
Venture & Growth Investing in Life Science Industrials
Q3 reflects a slight correction but was still considerably stronger than Q3 '20. Contributing to Q3 funding were three deals totaling $575M highlighted below; Opentrons, Deep Genomics, and Mammoth Biosciences.
The bulk of Q3 funding remains in later stage rounds similar to previous quarters with more Life Science Industrials scaling and raising Series C and D rounds. Q3 did see a slight increase in early VC funding compared to Q2 and far more than the previous year as greater numbers of startups are reaching commercialization.
Dynamk Recommended Reads
Business
Envisagenics, a Dynamk portfolio company, closed its Series A financing to scale its drug discovery platform and biopharmaceutical partnerships
Sartorius strengthens its position in cell and gene therapy with a majority stake acquisition of CellGenix
MOBILion nearly doubles its funding intake with $60M Series C round
Sartorius extends its cell culture media and feed supplement business with $60M Xell acquisition
Repligen offers 15x multiple to acquire Avitide Inc. and its affinity resin for gene therapy
Opentrons raises $200M Series C round for its disruptive lab automation platform
Deep Genomics raises $180M in oversubscribed Series C to continue expanding its AI-based drug development platform
Mammoth Biosciences enables expansion of novel CRISPR platform with $195M Series D
Manufacturing
FUJIFILM Diosynth Biotechnologies announces $850M capacity investment package
AGC Bio increases footprint by buying former Novartis 622K sqft Longmont, CO facility
Cytiva doubles liquid cell culture media capacity with Intermountain bolt-on
Resilience will acquire Bluebird's lentivirus manufacturing facility for $100M
CDMO Rentschler plans to increase manufacturing capacity by 2x with 22K sqft US facility
Research and Development
PBS Biotech to continue developing cell and gene therapy bioreactors with $10M financing round
UK-based consortium of 5 companies aims to leverage 3D printing to create more efficient mAb manufacturing processes
MIT spinout Kytopen raises $30M to create a better way of adding genetic material into human cells
*Note: reported transaction amounts and timing are subject to change dependent on final closings.